In this article, we discuss 5 defensive stocks that quant billionaire Jim Simons loves. If you want to read about some more stocks in the Simons portfolio, go directly to Quant Billionaire Jim Simons Loves These 10 Defensive Stocks.
5. Exxon Mobil Corporation (NYSE:XOM)
Number of Hedge Fund Holders: 72
Exxon Mobil Corporation (NYSE:XOM) explores for and produces crude oil and natural gas. Regulatory filings reveal that Renaissance Technologies owned over 7.1 million shares of Exxon Mobil Corporation (NYSE:XOM) at the end of June 2022 worth $612 million, representing 0.72% of the total portfolio. The firm is placed fifth on our list of defensive stocks in the portfolio of quant billionaire Jim Simons.
On September 12, Piper Sandler analyst Ryan Todd maintained an Overweight rating on Exxon Mobil Corporation (NYSE:XOM) stock and lowered the price target to $108 from $109, noting that despite inflation risk, there was no change to strategic priorities across the upstream coverage.
Among the hedge funds being tracked by Insider Monkey, Florida-based investment firm GQG Partners is a leading shareholder in Exxon Mobil Corporation (NYSE:XOM), with 47.5 million shares worth more than $4.1 billion.
In its Q2 2022 investor letter, First Eagle Investments, an asset management firm, highlighted a few stocks and Exxon Mobil Corporation (NYSE:XOM) was one of them. Here is what the fund said:
“Integrated oil and gas giant Exxon Mobil Corporation (NYSE:XOM) performed well in the second quarter as continued high prices for energy products supported the stock. As the largest refiner in the US, the company has benefitted from wide “crack spreads,” or the margin between the cost of crude oil and the petroleum products extracted from it. Exxon continues to invest in refining capacity in the US, which industrywide has been in steady decline since 2019. We are pleased that Exxon has been using its strong cash flows to reduce debt and to return cash to shareholders through dividends and stock repurchases.”
4. Merck & Co., Inc. (NYSE:MRK)
Number of Hedge Fund Holders: 79
Merck & Co., Inc. (NYSE:MRK) operates as a healthcare company worldwide. Latest data shows that Renaissance Technologies owned 6.7 million shares of Merck & Co., Inc. (NYSE:MRK) at the end of the second quarter of 2022 worth $616 million, representing 0.73% of the portfolio.
On September 14, Berenberg analyst Luisa Hector upgraded Merck & Co., Inc. (NYSE:MRK) stock to Buy from Hold and raised the price target to $100 from $95, noting the simple success stories in the pharma sector remained attractive for investors.
At the end of the second quarter of 2022, 79 hedge funds in the database of Insider Monkey held stakes worth $6.1 billion in Merck & Co., Inc. (NYSE:MRK), compared to 84 in the previous quarter worth $5.9 billion.
In its Q2 2022 investor letter, Sound Shore Management, an asset management firm, highlighted a few stocks and Merck & Co., Inc. (NYSE:MRK) was one of them. Here is what the fund said:
“On the positive side, a number of our health care names outperformed, including drug maker Merck & Co. (NYSE:MRK). Benefitting from a best-in-class research and development team, Merck’s progress is being fueled by the impressive growth of its immuno oncology cancer drug, Keytruda. The stock remains attractive at less than 12 times 2023 earnings.”
3. The Home Depot, Inc. (NYSE:HD)
Number of Hedge Fund Holders: 80
The Home Depot, Inc. (NYSE:HD) operates as a home improvement retailer. According to regulatory filings, Renaissance Technologies owned 1.7 million shares of The Home Depot, Inc. (NYSE:HD) at the end of June 2022 worth $488 million, representing 0.57% of the portfolio.
On September 1, Atlantic Equities analyst Sam Hudson maintained an Overweight rating on The Home Depot, Inc. (NYSE:HD) stock, noting that despite near-term recession risk, the firm had a unique position as a diversified home improvement retailer.
Among the hedge funds being tracked by Insider Monkey, Washington-based firm Fisher Asset Management is a leading shareholder in The Home Depot, Inc. (NYSE:HD), with 8.4 million shares worth more than $2.2 billion.
In its Q1 2022 investor letter, Diamond Hill Capital , an asset management firm, highlighted a few stocks and The Home Depot, Inc. (NYSE:HD) was one of them. Here is what the fund said:
“The Home Depot, Inc. (NYSE:HD) shares underperformed as continued solid fundamental results were outweighed by concerns about the impact rising mortgage rates may have on the housing market and general inflationary pressures potentially leading to a consumer spending slowdown. We view the long-term prospects and multi-year fundamental outlook as unchanged.”
2. JPMorgan Chase & Co. (NYSE:JPM)
Number of Hedge Fund Holders: 104
JPMorgan Chase & Co. (NYSE:JPM) operates as a financial services company worldwide. The hedge fund chaired by Jim Simons owned close to 3.9 million shares of JPMorgan Chase & Co. (NYSE:JPM) at the end of June 2022 worth $442 million, representing 0.52% of the portfolio.
On September 12, Deutsche Bank analyst Matt O’Connor kept a Buy rating on JPMorgan Chase & Co. (NYSE:JPM) stock and lowered the price target to $155 from $174, noting that banks had underperformed this year, largely driven by recession fears.
Among the hedge funds being tracked by Insider Monkey, Washington-based investment firm Fisher Asset Management is a leading shareholder in JPMorgan Chase & Co. (NYSE:JPM), with 7.99 million shares worth roughly $900 million.
In its Q1 2022 investor letter, Carillon Tower Advisers, an asset management firm, highlighted a few stocks and JPMorgan Chase & Co. (NYSE:JPM) was one of them. Here is what the fund said:
“More cyclical sectors, including technology and consumer discretionary, were among the weakest, likely due to rising interest rates and inflation. It was encouraging to see the quarter finish on a strong note with the S&P 500 only about 5% away from its all-time highs. Shares of JPMorgan Chase (NYSE:JPM) detracted from performance due to the company’s increased expense guidance, announced in January.”
1. Berkshire Hathaway Inc. (NYSE:BRK-B)
Number of Hedge Fund Holders: 109
Berkshire Hathaway Inc. (NYSE:BRK-B) engages in the insurance, freight rail transportation, and utility businesses. Latest data shows that Renaissance Technologies owned close to 1.7 million shares of Berkshire Hathaway Inc. (NYSE:BRK-B) at the end of June 2022 worth $488 million, representing 0.57% of the total portfolio. It is one of the most prominent defensive stocks in the portfolio of quant billionaire Jim Simons.
Berkshire Hathaway Inc. (NYSE:BRK-B) is traditionally referred to as one of the best defensive stocks in the Jim Simons portfolio since the firm has interests in a number of cash-rich businesses with strong pricing power that can withstand recessionary pressures.
Among the hedge funds being tracked by Insider Monkey, Chicago-based investment firm Bill and Melinda Gates Foundation Trust is a leading shareholder in Berkshire Hathaway Inc. (NYSE: BRK-B), with 34.7 million shares worth more than $9.5 billion.
In its Q1 2022 investor letter, Diamond Hill Capital , an asset management firm, highlighted a few stocks and Berkshire Hathaway Inc. (NYSE:BRK-B) was one of them. Here is what the fund said:
“Diversified holding company Berkshire Hathaway Inc. (NYSE:BRK-B) reported strong earnings during the quarter and benefited from continued share repurchases below intrinsic value. The company also announced significant deployments of excess cash during the quarter, including the acquisition of Alleghany and a large increase in its stake in Occidental Petroleum.”
You can also take a peek at 13 Best Hemp Stocks to Buy Now and Billionaire Dan Loeb’s Top 10 Stock Picks.
